23.11.2021: News from KW 46

Studies and Co.

Purchasing practices: Better buying "Better Buying Index Report 2021" (PDF): 21 companies participated in this year’s evaluation cycle; A total of 1,245 reviews were submitted by suppliers. The results show that despite the corona crisis, the participants were able to build on the improvements of previous years in several areas (e.g. in the categories Cost of Negotitation and Planning and Forecasting). Only in the category Sourcing and Order Placement The score went down (Summary) (PDF). ACT "ACT Purchasing Practices Surveys by Brands and Suppliers - General Report 2021" (PDF): In the largest survey to date on the specific purchasing practices of major international brands and retailers, 1,338 suppliers and 1,831 brand employees participated. The surveys were conducted in all major garment-producing countries, including those where: ACT is directly active: Bangladesh, Cambodia, Myanmar & Turkey. According to suppliers, the following areas of procurement practices are most important for creating the conditions for paying a living wage: Price negotiations (57%), procurement (49%) and price targets (48%).

forced labour: Sheffield Hallam University Helena Kennedy Centre "Laundering Cotton - How Xinjiang Cotton is Obscured in International Supply Chains": The report examines how the Uighurs Cotton produced by forced labour from the region Xinjiang find their way into international supply chains. For this purpose, customs data of five leading textile companies in China were examined. The Xinjiang region produces about 85% of all Chinese cotton. 52% of Chinese exports of raw cotton, yarn and fabrics go to Bangladesh, Vietnam, the Philippines, Hong Kong, Indonesia and Cambodia. The manufacturers in these countries process the cotton, which obscures the origin of the cotton. Among the companies with "Downstream Supply Chain Risk" are among others. H&M, s.Oliver, Adidas, C&A, Primark and Hugo Boss to find. Sedex "Recognising forced labour risks in global supply chains" (PDF): The certification organisation publishes results from over 100,000 social audits carried out in 158 countries between 2017 and 2021. The analysis found that over 38,000 audits (36%) identified two or more indicators of forced labour. More indicators are found, on average, in audits at the lower levels of the supply chain, where the visibility and influence of purchasing companies is lower (e.g. crop cultivation and animal husbandry).

Friedrich Ebert Foundation "Transnational Legal Tactics for Labour - How to make use of Corporate Accountability Mechanisms" (PDF): In the analysis, the authors place labour and human rights issues in the context of the current global economy and give an insight into their "legal toolbox", through which they show which means and tools are available to the trade union movements. It analyses the instruments of global framework agreements, enforceable trade mark agreements, multi-stakeholder initiatives, compensation funds, OECD Guidelines and National Contact Points, transnational litigation and mandatory human rights due diligence.

McKinsey & Company "Revamping fashion sourcing: Speed and flexibility to the fore" (PDF): The results of the study confirm a fundamental change in the clothing industry. COVID-19, disruptions in shipping, limited supply of raw materials, the volatility of demand and the surge in online sales are obstacles that have shifted clothing companies to a new course, leading them to increase their flexibility, shorten throughput times and switch to demand-driven supply chains, including through: Simplification of the product range, efficiency in product development, procurement through country mix (+Nearshoring) and long-term partnerships.

News

EU actions related to textiles: In the second part writes about ESG in fashion FashionUnited about EU legislative initiatives on greenwashing (Part 1 in the news update of KW 42). Although the topic of greenwashing at the Green Deal-At the top of the EU agenda, no specific legal framework has been established so far. Fashion companies can therefore only rely on the general Unfair Commercial Practices Directive (UCPD).2005/29/EC, ‘UCPD“) and Directive 2006/114/EC refer to misleading and comparative advertising when making green claims. The general rule of UCPDThe Directive prohibits traders from unfairly informing consumers about the environment and misleading them. The European Commission has also announced that it will tackle the spread of logos and labels that rely on green properties to protect consumers from deceptive and misleading information.

mHREDD (Mandatory Human Rights and Environmental Due Diligence): 42 companies, business associations and investors are in favour of meaningful and secure stakeholder involvement as a key aspect of the EU framework for mandatory human rights and environmental due diligence (PDF). Focus on stakeholders' views with communities and individuals actually or potentially affected by EU businesses' businesses, including their value chains. The signatories (e.g. Tchibo and PatagoniaBelieve that meaningful, gender-sensitive and intersectional involvement of rights holders and civil society, including human rights defenders, is crucial for a due diligence process that effectively identifies the impact on human rights and addresses their concerns.

Sneaker hunting: In the joint research of flip, the NDR and the TIME the journey of discarded sneakers shall be investigated; the discarded sneakers celebrities like Jan Delay, Kevin Kühnert and Carolin Kebekus have been equipped with GPS trackers (Sneaker hunting). By tracking the GPS signals, the systematic destruction of new goods NIKE Where to find new shoes for the recycling program NIKE Grind shredded (Documentary by STRG_F). A spokesman for the Federal Ministry for the Environment speaks of a possible "violation of the waste hierarchy, as determined in the Circular Economy Act". The Berlin Senate Department for the Environment is now following up on the report.

Countries of production

Sri Lanka: The Free Trade Zones and General Services Employees Union (FTZ & GSEU) is the the first trade union to successfully sign a collective agreement with a factory (Next Manufacturing Limited) in Sri Lanka's largest free trade area in Katunayake negotiated.

Bangladesh: The country has stood for years for non-compliance with conventions of the International Labour Organization (ILO) (ILO) in criticism. The verification bodies for compliance with the ILO The agreement had recently called for a roadmap with time steps until Bangladesh wants to complete the necessary reforms. These Roadmap Bangladesh has now presented reform steps on labour law reforms, improved state enforcement tools and better tools for resolving labour disputes and a timeframe until 2026.